ICE Canola Continues Higher On Follow-Through Buying

End user pricing coupled with a lack of significant farmer selling has supported canola values recently and was continuing to do so Thursday morning, according to traders who noted that expectations for a smaller canola crop this year will require some rationing of demand.

Gains in outside markets also spilled over to provide support. CBOT soybeans were being called higher to start the North American session, while Malaysian palm oil and European rapeseed futures were stronger in overnight trade.

Sunny and hot weather conditions across most of western Canada limited the upside in canola. However, temperatures are forecast to start turning cooler into the next week and frost risks should start becoming a factor in the market.

The Canadian dollar was stronger Thursday morning, which kept the advances in check. While farmer hedges were only light, scale-up selling was starting to come forward as cash bids improved in the countryside, according to an analyst.

About 4,800 canola contracts had traded as of 8:45 CDT.

Western barley futures were untraded and unchanged Thursday morning.

Prices in Canadian dollars per metric ton at 8:45 CDT: